In response to the continuous applications for Bitcoin (BTC) spot Exchange-Traded Funds (ETFs) by different asset managers such as BlackRock, WisdomTree, and Ark Invest, former US Securities and Exchange Commission (SEC) Chair Jay Clayton has issued a statement.
Clayton is sure that a Bitcoin ETF will be approved despite the SEC’s cautious attitude and the applications encountering repeated delays.
Clayton recently gave an interview to CNBC, during which he discussed the eagerness of reputable service providers to make this kind of investment available to the general public in response to demand from individual investors.
A number of large asset managers have applied to the SEC for Bitcoin spot ETFs to be approved. There has been a holdup in the approval process since the regulatory agency has not yet given its stamp of approval to any of these applications.
Investors and businesses alike are waiting impatiently for progress to be made in the areas of market manipulation, investor protection, and digital asset custody, all of which have been highlighted as areas of concern by the SEC.
Clayton’s analysis emphasizes the one-of-a-kind characteristics of Bitcoin as a decentralized digital currency, which has made it more attractive to ordinary investors.
As the desire for Bitcoin exposure via regulated financial products continues to rise, Clayton has highlighted this trend. He also said that respected financial service firms are anxious to start selling Bitcoin ETFs.
As a result of rising investor demand and the eagerness of reputable service providers to meet it, Clayton is more certain than ever that a Bitcoin spot ETF will eventually be approved.
Clayton’s remarks serve as a reminder of the potentially game-changing change that an approval of a Bitcoin spot ETF may bring, even if the timing of the approval remains unknown. If Bitcoin were to be approved, it would become more accessible and regulated for ordinary investors, which might lead to wider acceptance and use.
According to Bitcoinist, the SEC has indicated it would be postponing its decision on WisdomTree’s proposed Bitcoin spot ETF. Other ETF applications, such as those from Invesco, Galaxy Digital, and Valkyrie Funds, have also been delayed.
Bloomberg’s ETF expert James Seyffart has chimed in on the subject, expressing concern that the clearance process might take longer than October by 45 days.
According to Seyffart, “zero percent chance of approval before October” exists under the existing conditions.
Seyffart’s message emphasizes the need for prudence as market players wait for additional information from the SEC about timing and future actions. This data indicates that the approval procedure may take more time than expected.
As they traverse the complicated regulatory framework, industry experts and market players anxiously await more details from the SEC, even if the precise timing for approval remains unknown.
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